The now professor at the University of Maryland, in the United States, warned that the agreement reached by the Minister of Economy, Martín Guzmán, confronts Kirchnerism on issues such as the reduction of tariff subsidies or the rise in interest rates.
According to his point of view, the principle of agreement with the international agent is positive. “It is good that there is an agreement that reduces the fiscal deficit and also reduces monetary financing”he said, adding: “We have to see if the commitment can be fulfilled, who knows what will happen in 2024? Or if it will finally reach 2025 or will have to undergo a restructuring beforehand.”
And he clarified that “what is true is that the government kept saying that the IMF gave Macri the credit to support his re-election. That speech does not go any further. The IMF asked Macri to go from a deficit of 2.7 to zero in less than two years. And the current government is being told that until after he is re-elected, he is not asking for much. Who is the Fund helping the most? Clearly now. If the agreement goes as announced, the IMF is helping much more to Alberto Fernández to be re-elected than what helped Macri”.
Galiani added that “if the Fund agrees to what was announced, there will be an instance in which the market is going to incorporate an improvement in its prices. But the market is also interested in the repayment capacity of these bonds and that generates more doubts.”
Source: Ambito
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